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Check Before You Invest : Vaidya Sane Ayurved Laboratories Ltd

BSE: 0 NSE: MADHAVBAUG ISIN: INE0JR301013
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Vaidya Sane Ayurved Laboratories Ltd belong to?
Vaidya Sane Ayurved Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Vaidya Sane Ayurved Laboratories Ltd a good quality company?
Vaidya Sane Ayurved Laboratories Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vaidya Sane Ayurved Laboratories Ltd undervalued or overvalued?
Vaidya Sane Ayurved Laboratories Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 40.89 55.82
Price to Book 3.38 4.46
Price to Sales 2.03 2.16
EV to EBITDA 16.06 22.45
Q.4 Is Vaidya Sane Ayurved Laboratories Ltd a good buy now?
Vaidya Sane Ayurved Laboratories Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd revenue growth is -10.5% for FY-2025, which is below its 5-year CAGR of 2.98%, indicating slower growth.

Q.2 Gross Profit margin of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.5% for FY-2025, which is above its 5-year median of 9.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.76% for FY-2025, which is above its 5-year median of 9.09% indicating increasing margins.

Q.4 Net Profit Margin of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Net Profit Margin is 5.62% for FY-2025, is above its 5-year median of 4.64%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.5 9.4
Operating Profit Margin (%) 11.76 9.09
Net Profit Margin (%) 5.62 4.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Return on Asset is 6.77%, which is in line with its 5-year historical median of 6.77%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Return on capital employed is 12.02% for FY-2025, which is in line with its 5-year historical median of 12.02%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Return on equity is 9.67% for FY-2025, which is in line with its 5-year historical median of 9.67%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Cash conversion cycle is -23 days, above its 5-year historical median of -24 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.21 1.88
ROE (%) 9.67 9.67
ROCE (%) 12.02 12.02
Cash Conversion Cycle -23 days -24 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.20, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vaidya Sane Ayurved Laboratories Ltd?
Vaidya Sane Ayurved Laboratories Ltd Debt to cash flow from operations is 0.19, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vaidya Sane Ayurved Laboratories Ltd?

Q.1 Promoter shareholding and pledge status of Vaidya Sane Ayurved Laboratories Ltd?
Promoters hold 66.34% of the Vaidya Sane Ayurved Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vaidya Sane Ayurved Laboratories Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vaidya Sane Ayurved Laboratories Ltd vs industry peers?
Vaidya Sane Ayurved Laboratories Ltd revenue CAGR is 2.98%, compared to the industry median CAGR of 2.98%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -10.5 3
Gross Profit Growth (%) 200 19
Operating Profit Growth (%) 233.3 15.4
Net Profit Growth (%) 400 22.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.21 0.73
ROE (%) 9.67 13.88
ROCE (%) 12.02 17.77
Cash Conversion Cycle (days) -23.12 -

Valuation & price assessment

Q.1 Stock return of Vaidya Sane Ayurved Laboratories Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -14.92% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -14.9% -4.8%
Q.2 Valuation ratios of Vaidya Sane Ayurved Laboratories Ltd vs historical?
The current P/E ratio of 40.89 is lower than its historical median of 55.82, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 40.89 55.82 37.25
Price to Book 3.38 4.46 3.64
Price to Sales 2.03 2.16 4.21
EV to EBITDA 16.06 22.45 17.66

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